I read today in the Poughkeepsie Journal that NY Senator Charles Schumer is blasting banks and mortgage lenders who have provided homebuyers with subprime loans. 

Mr. Schumer denounced "shocking rate increases and other tricks that leave borrowers...unable to pay.  Most people don't read their mortgage documents and can't be expected to."  He continued, "It's astounding.  They're despicable.  I hate them..."

This raises an important question about who is responsible for an individual's inability to pay their mortgage.  While there is no doubt that there have been some shady brokers and lenders who would sell their soul for a higher commission check, the full blame cannot simply be placed on lenders. 

Ultimately, it is the individual, along with a trusted team of advisors that should be responsible for making the decision to buy a house.  This is where Mr. Schumer got it all wrong--people really should read their mortgage doucments and we should expect them to do so.  Isn't it reasonable to say that someone should understand their obligations before committing to go thousands of dollars in debt.  Buyers should take the time to read the documents and consider the implications of taking on this financial obligation.  Not only that, their attorneys should read all of the mortgage documents and discuss if the terms are in their client's best interest.  Furthermore, real estate agents should discuss with clients their budgetary concerns.  Maybe some ethics training for loan officers (and Realtors for that matter) would do some good as well.

It is easy to point the finger at lenders, but it is a far more complex problem than that.  There is definitely enough blame to go around for everyone involved.    Politicians are expert in pointing fingers and deflecting blame, but let's face it--escalating property taxes enacted by our public officials don't necessarily make it easier for homeowners to pay the mortgage bill every month either.  Instead of pointing fingers, let's each hold ourselves accountable and create more of a dialog with our customers about the financial impact of owning a home.